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Tuesday, 25 October 06:19 (GMT -05:00)

Business And Politics News

US Banks Passed Stress Tests


US bankin gnews. Stress tests for banks may be called one of the key moments of this week. On Tuesday FRS announced the results of stress tests for banks. Reports show that the majority of large-scale US banks are able to fulfill their obligations in extremely non-favourable economic circumstances. The situation may then develop in the following way:
  • Unemployment growth to 13%
  • Price drop by 50%
  • Drop of housing price by 21%

In such a case, the loss of 19 largest banks would amount to 534 bln. dollars. Despite considerable drop of predicted capital, 15 out of 19 holding banking companies will keep their capital four times higher than its normative value.

According to Aleksei Afanasiev, the head of the Department of Portfolio Investments of Masterforex-V Academy, last week’s macroeconomic data was mostly positive:
1. Retail sales rose by 1.1% in February, taking into consideration seasonal fluctuations. In comparison to February 2011, sales have risen by 6.5%. January sales have risen from 0.4% to 0.6%.




2. Industrial production remained the same. Capacity ratio is falling. It has dropped by 78.7% or by 1.6 points from the average since 1972. Its value is 18.3% lower than before crisis. Capacity ratio in January has been lowered from 78.5% to 78.8%. Industrial output did not change in February. Market consensus was slightly worse than expected.



3. Reports of Philadelphia FRS about national production volume slow minor increase in January. Current activity index in March amounted to 12.5 and showed the increase by 2.3 basic points, which is the maximal point since April 2011. General business index remained almost the same in March and amounted to 20.2.

4. Weekly unemployment claims have dropped to 351 000. The four-week moving average is close to the lowest point since the beginning of 2008.




5. Consumer sentiment index dropped to 74.3 in March from 75.3 in February, which is lower than market consensus. Consumer’s general sentiment is rather weak and does not show certain signs of recovery. Small business index slightly rose in February. It has risen form 93.9 to 94.3, which is the 6th rise in a row. However, the index remains at a rather low point due to slow economic growth.

Rally, which started since the beginning of the year, is getting weaker and casts pressure on investors’ psychology. We are currently observing overbought market, and there remains the only question: “will the future correction amount to 3-5% or 10-15%, or something else?”. We recommend redistributing the portfolio, for we believe that aggressive buying at current points are inappropriate.




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Freedom House Says Crimean Elections Are Illegitimate

Freedom House, a world-famous international organization defending human rights around the globe is reported to have condemned the recent parliamentary election in the Crimea, which is now a part of the Russian Federation, but Ukraine and the Western world still see the Crimea as a part of Ukraine. The organization says that the elections were illegitimate anyway since the territorial dispute is still underway.
Publication date: 18 October 02:26 PM

Global Economy Will Stay Volatile Until Bexit Is Over

As you probably know, the decision made by the British people to quit the European Union, which is now known as the Brexit, added uncertainty to the global economy as international financial markets went more volatile.


Still, G20 leaders still hope that the United Kingdom is going to retain close economic and political ties with the European Union. In the meantime, more and more representatives of the international expert community, including the UK’s financial authorities, assume that this uncertainty is likely to be seen as long as the Brexit procedure is still underway. This means that the existing volatility seen in the global economy and financial markets will disappear only when the Brexit is completed.
Publication date: 16 October 04:26 PM

Russian-Saudi Oil Agreement Pushed Oil Prices Higher

For those of you who don't know, Russia and Saudi Arabia signed an agreement on cooperating in the global market of crude oil. The news pushed oil prices higher. To be more specific, Brent oil gained 4% instantly after the news. Still, the rally was strong but short.
Publication date: 03 October 01:54 PM

Will Russia Join OPEC Agreement on Oil Production Cuts?

After OPEC unexpectedly decided to cut their oil production during the unofficial summit in Algeria on September 29,2016, the international community started asking one and the same question, which is whether Russia is actually going to join the agreement. The thing is that Russia was one of the first advocates of this idea and urged every energy nation out there to make this crucial step for their mutual benefit based on higher oil prices and bigger profits from oil exports.
Publication date: 30 September 06:55 PM

Nassim Taleb: Being Successful is Being Unpredictable

The world is full of unpredictable events happening from time to time. Nobody expected the disintegration of the USSR or the 9/11 terrorist attacks. World War I broke out in an instance and came as a shock to the humanity, doing unprecedented damage to the entire world.
Publication date: 30 September 05:13 AM

Will Russia, Iran, and Saudi Arabia Agree on Oil Production?

Today, Algeria is hosting an informal OPEC summit. The used to say that Russia may well join the cartel during this informal summit to discuss the current situation in the global market of crude oil and work out an efficient way to change it for the better. Still, now it is reported that Russia is not going to be participating in the summit since this is a summit for OPEC member only.
Publication date: 28 September 05:04 PM

UK-EU Relations After Brexit

As you probably know, the United Kingdom is going to quit the European Union. At the same time, the UK definitely wants to retain its economic ties with the EU after the so-called Brexit, Masterforex-V Academy experts say. When it comes to economic relations with the European Union, Great Britain can follow the example of Norway, Switzerland, Turkey, or the WTO.
Publication date: 16 September 05:15 AM

How Turkey Benefits From Reconciliation With Russia In Terms Of Geopolitics

After Putin and Erdogan made steps toward reconciling Russian and Turkey, the Russian folks changed their mind as well. Not so long ago, you could see most Russians being hostile to everything that comes from Turkey. Now, this is no longer the case. At least it seems so.



Publication date: 31 August 10:32 AM

Brexit Threatens UK With Disintegration

Some experts say that the so-called Brexit may eventually result in the disintegration of the United Kingdom. In particular, Scotland has already made a call for another referendum on independence from the United Kingdom.
Publication date: 31 August 06:42 AM

Saudis Are Dumping Oil Prices Again

More and more experts working in the oil industry start discussing a new wave of price dumping initiated by Saudi Arabia. That thing is that a couple of weeks ago, the Saudis dropped their oil export prices to Asian countries by 0.7-1.3 dollars per barrel.


Publication date: 22 August 12:21 PM